New York Small Businesses Get Extra Time To Follow New Rules

It goes without saying that owning and operating a business in the Empire State can be a tough endeavor. Not only is the business world highly competitive, but you must constantly worry about all the taxes and fees that New York forces businesses to pay. Not to mention the high regulatory burden that many businesses have a hard time keeping up with.

Every time you turn around, it seems like there is a new regulation, rule, law, fee, or form that has to be followed, filled out, or paid, and with the start of the new year, there is another regulation that needs to be followed, but business owners have a few more days available to them to comply with the law, or be subject to some serious fees and charges.

The U.S. Department of the Treasury's Financial Crimes Enforcement Network is enacting a new rule that requires certain business owners to disclose the information related to who or what people own and control a company, either directly or indirectly.

The Beneficial Ownership Information Reporting Rule(s) and Beneficial Ownership Information Access and Safeguards Rule(s), which are available on the US Treasury website, now require around 32 million small businesses to provide personal information to the Treasury. Documents like a photo ID, home address, and other personal information must be sent to people who are related to or have an ownership stake in those businesses. This applies to many corporations and LLCs all over the nation, especially in places like New York, since so many businesses call the Empire State their home.

These rules were initially set to go into effect on January 1st, but a series of court actions have caused this deadline to be extended until January 13, 2025.

According to CBS News, businesses that do not comply with these new rules are subject to some serious penalties and fines.

Penalties can be as much as $591 per day that companies do not file the appropriate forms, not to mention potentially going to prison for up to two years and an additional $10,000 fine.

You can find more information about this on the FinCen website, along with a list of the business types to which these new rules apply.

It seems like a pretty tough time to own a business in America.